1. Dr Ajit Shetty Corporate Vice President Enterprise Supply Chain Johnson & Johnson (retired) Chairman Emeritus of the Board of Directors Janssen Pharmaceutica Indian Business Chamber of Luxembourg Luxembourg June 18, 2012 The Pharmaceutical Industry Challenges and Opportunities 1

2. J&J Janssen Health Care The Pharma Market Challenges Opportunities M&A Indian Pharma Conclusions CONTENTS 2

3. Global Leader in Health Care More than 250 Operating Companies In 60 Countries Selling Products in More Than 175 Countries 116,000 Employees Worldwide Johnson & Johnson: Global Presence 3

4. 4 Johnson & Johnson Family of Companies Sixth-largest consumer health care company The world’s largest and most diverse medical devices and diagnostics company The world’s fifth-largest biologics company The world’s eighth-largest pharmaceuticals company Jesica Harrington Diagnostic test fueled hope in her fight against cancer 4

5. 2011 Sales by Segment $24.4B 6.2%* $14.9B (0.7%*) $25.8B 1.7%* MD&D 40% Pharmaceuticals 37% Consumer 23% 2011 Sales: $65.1 Billion $ U.S. Billions *Operational YOY change 5

6. Our Consumer Business Segment  2011 sales of $14.9 billion  Broad portfolio of iconic CPG and OTC brands  Based on sound science and technology  Touching a billion lives every day

7. Our Pharmaceuticals Business Segment  2011 sales of $24.4 billion  Now unified under the Janssen name  A well-positioned pipeline –Growing demand –Emerging markets –Unmet needs around the world  Recent product approvals

8. Our Medical Devices & Diagnostics Business Segment  2011 sales of $25.8 billion  The world’s largest medical technology business  Focused on emerging markets and an aging population  Our most recent acquisition A premier manufacturer of orthopedic devices

9. Dr Paul Janssen (1926-2003) Founder of Janssen Pharmaceutica One of the most prolific researchers into new therapeutics for use in anesthesia, pain management, psychiatry, gastroenterology, mycology and many other therapeutic areas Received 22 Honorary Doctorates and 5 Honorary Professorships Holder of more than 100 patents Over 850 scientific publications In the survey Belgian of Belgians (Jan. 2004) Dr. Paul Janssen has reached the third place 9

10. Janssen Pharmaceutica Campus Beerse I Beerse II Olen Geel

11. Pain Management ® /Fentanyl ® / TTS Rapifen ® Sufenta ® Fungal Infections Daktarin ® Nizoral ® Shampoo Sporanox ® HIV Intellence ®..................... Psychiatry Haldol ® Risperdal ® Neurology Topamax® Reminyl ® Gastroenterology Imodium ® Motilium ®.......... Portfolio of Leading Pharmaceutical Brands

12. Health Care at $5.7 trillion is 7-8% of Global GDP 12

13. Total Healthcare Expenditure Belgium France Germany Italy UK US Japan as a percentage of GNP at market prices 13

14. Ratio Healthcare Expenditure - Drug Expenditure Health Care as % of GNP Healthcare expenditure as % of GNP Share of drugs in healthcare USA CHE DEU CAN SUE FRA ISL AUS NED AUT DEN NOOR FIN BELGIUM NLZ GBR LUX IRL SP JAP POR CZE GBC 14 12 10 8 6 05 15202530 Gradient: 0.13 Constant: 9.99 Correlation coeff.:- 0.44 14

15. Global Pharmaceutical Market 15

16. Growth Projections for the Pharmaceutical Industry 16

17. The Pharmaceutical Research & Development Process Timeline / NPD Process Discovery / Concept Early Development ( PC, Ph1, Ph2a) Late Development (Ph 2b, Ph 3) Post- Launch Regulatory Review E arly Exploration Clinical Trials 10 - 15 YEARS ~$1B to $1.5B Investment FDA Approved Drugs Preclinical IND APPLICATION SUBMITTED NDA/BLA SUBMITTED First in Human Ph2 Ph3 Molecule

18. Pharma R&D spend and new drug approval 18

19. Global pharmaceutical market generics challenge 19

20. J&J Counterfeit Products Position Our Credo responsibility Patients should receive genuine products Taking tangible steps Monitor markets Work with regulators to strengthen laws http://www.jnj.com/connect/about-jnj/views-positions/product-safety/

21. The global pharmaceutical market growth remains under pressure The near term future belongs to the payers PHARMA INDUSTRY Changing sources of growth Intensifying competition Shifting stakeholder power Increasing payer power over treatment decisions HTA controlling access Increasing patient power Changes in distribution patterns Increasing generic penetration in large therapy areas Declining R&D productivity Mature vs. emerging markets Primary Care vs. Specialist driven

22. Positive Trends Global expansion/emerging markets Demographics/aging population Unmet needs Advancing science and technology 22

23. Drug Usage by Age Band 60% of drugs are used by people over 60 And this group is growing 23

24. Unprecedented Potential Waiting for a solution for prostate cancer… ZYTIGA® Abiraterone Acetate First-in-class, novel orally administered for treatment of prostate cancer Waiting for a more effective option for hepatitis C… Telaprevir (VX-950) Potential first-in-class protease inhibitor Waiting for a better anticoagulant… Rivaroxaban First-in-class, once-daily oral anticoagulant Waiting for a more convenient way to treat HIV… TMC-278 Oral once-daily single agent/ fixed dose combination 24

25. Innovative delivery technology with therapeutic added value Oral controlled release Once-monthly injection Rate-controlling semi-permeable membrane Drug compartment 2 Laser-drilled delivery orifice Push compartment OROS®: Osmotic-Controlled Release Oral - Delivery System Drug compartment 1 Outer coat Water

26. Cross Sector Synergies Convergent Technologies CYPHER EVRA

27. Our Vision: Comprehensive Healthcare Prevention Diagnosis Treatment 27

28. Survival of the fittest: Takeovers, Mergers and JVs Smithkline RIT - Beecham Rhône-Poulenc - Rorer Kabivitrum - Pharmacia Nicholas - Roche Vickx Blendax - Procter & Gamble Bristol-Myers - Squibb Synthélabo - Delagrange & Delalande Sanofi - Winthrop Kabi Pharmacia - Farmitalia Brocades - Yamanouchi Warner - Wellcome (OTC products) Cyanamid - AHP Roche - Syntex Roussel - Hoechst Glaxo - Wellcome Boots - Knoll Pharmacia - Upjohn Marion Merrell Dow - Hoechst Roussel Rhône-Poulenc Rorer - Fisons Ciba - Sandoz Sankyo - Luitpold Pharma Roche - Boehringer Mannheim Sanofi - Synthelabo Astra - Zeneca Hoechst-Marrion-Roussel - Rhone- Poulenc-Rorer (= Aventis) Warner-Lambert - Pfizer Monsanto - PharmaciaUpjohn GlaxoWellcome – Smithkline Novartis acquires 20% in Roche Intense M&A activity in biotech Alza – J&J Dupont- BMS 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 28

29. Survival of the fittest: Takeovers, Mergers and JVs Chugai Pharm- Hoffmann-La Roche Hoffmann-La Roche – Novartis (Novartis owns 33% of Roche) Pharmacia- Pfizer Searle – Pfizer Roche Consumer Health – Bayer Aventis – Sanofi.Synthelabo: become Sanofi-Aventis APS/ Berk becomes TEVA Celltech – UCB Genentech – Hoffmann-La Roche (Roche becomes majority owner Genentech) Aventis Pasteur MSD becomes Sanofi Aventis MSD Boots – Alliance Unichem becomes Alliance Boots Altana – Nycomed IVAX – Teva Lifescan – becomes J&J subsidiary Schering – Bayer becomes Bayer Schering Wyeth - Pfizer 2002 2003 2004 2005 2006 2007 2009 29

30. The Indian Pharmaceutical Industry An Awakening Giant? Positive Excellent, highly skilled people Language is no barrier Cost effective I/P Protection ? Improvement Areas Lack of patent protection Counterfeit Low prices

31. India’s Potential Role as a Pharma Player From A low priced generic market An exporter of generic products Large presence of counterfeit products To A market that rewards innovation A major factor in an integrated R&D / production global effort (partnership) A safe and effective supply chain

32. The future we can influence 32

33. Conclusion Global Competition in the Pharmaceutical Industry = Competition through Innovation 33